Budget 2016: New Brunswick's Government Should Have Known Better, says Professional Institute

OTTAWA, ONTARIO--(Marketwired - Feb. 2, 2016) - The New Brunswick government's 2016 Budget represents a failure to learn from federal experience over the past decade, says the Professional Institute of the Public Service of Canada (PIPSC).

"Over the past ten years or so, Canadians found out the hard way what happens when governments reduce spending and cut jobs based on an arbitrary financial target," said Professional Institute President Debi Daviau. "There are terrible social and economic consequences not only to affected workers and their families, but to local communities when they lose access to the key programs and services they rely on."

There are several effective ways for the province to achieve its fiscal objectives that do not involve spending cuts. A key element of the government's Budget strategy should have been to reduce its dependence on contracting out services, which costs New Brunswick taxpayers millions of dollars every year when government employees can perform most work more effectively and at less cost than private sector contractors. Abandoning plans to shift more provincial employees to a shared risk pension plan is another. In June 2015, PIPSC sent Premier Brian Gallant a detailed proposal outlining how the province could save $50 million while restoring defined pension benefits to its members, but the province did not act on the Institute's recommendations.

"We strongly encourage the government to learn from past mistakes. The people of New Brunswick need to know the specifics of these cuts and what their real impact will be on front-line services. The government of New Brunswick needs to consult in a meaningful way with all stakeholders, to look at alternatives and to find ways to mitigate the negative effects of this Budget. We continue to be ready to work with the Government to develop cost-effective solutions that will contribute to restoring the province's finances without affecting services to the public," concluded Daviau.

The Professional Institute of the Public Service of Canada represents some 55,000 professionals across Canada's public sector, including hundreds of highly skilled professional employees working for the Government of New Brunswick, such as Agrologists, Agronomists, Architects, Crown Counsel, Crown Prosecutors, Engineers, Land Surveyors, Legal Aid Lawyers and Veterinarians.